MINEX Forum

Tag: Kazakhstan

  • East Star Resources Discovers New Copper and Gold Deposits in Kazakhstan

    East Star Resources Discovers New Copper and Gold Deposits in Kazakhstan

    British company East Star Resources Plc has released interim results from its geological exploration at three sites in Kazakhstan—Verkh-Uba, Talovskoye, and Snezhnoye. Having operated in the country for over three years, the investor is searching for copper and gold, with Verkh-Uba being considered the most promising site.

    In early February, the company completed drilling three exploratory wells at Verkh-Uba, discovering new copper deposits beyond previously explored areas. A total of 238 core samples have been sent to the ALS KazLab laboratory in Karaganda for analysis. According to a preliminary JORC estimate, the deposit contains 20.3 million tonnes of ore with an average copper content of 1.16%, zinc at 1.54%, and lead at 0.27%.

    East Star Resources plans to continue exploration in 2025 to assess the site’s development potential. The company aims to start open-pit mining of non-ferrous metals in the coming years.

    In addition to copper deposits, the Snezhnoye site has also shown potential, with initial studies identifying a significant gold anomaly in an area previously used for small-scale artisanal mining.

  • National Environmental Data Bank System of Kazakhstan (NBDES) Goes into Full-Scale Operation

    National Environmental Data Bank System of Kazakhstan (NBDES) Goes into Full-Scale Operation

    ASTANA, Kazakhstan – The National Bank of Data on the State of the Environment and Natural Resources (NBDSOSiPР) has been successfully introduced into industrial exploitation. The main objective of the system is to ensure the principle of “single window” access to the entire infrastructure of the ecological fund, thereby promoting effective interaction between the government, natural resource users, and the general public.

    The NBDSOSiPР is designed to collect, store, and process data on the state of the environment and natural resources in Kazakhstan. It aims to improve the efficiency of environmental monitoring, analysis, and decision-making by providing a unified platform for accessing and sharing environmental information.

    The system is expected to enhance transparency and public participation in environmental management, as well as to support the implementation of the country’s environmental policies and international commitments.

    The launch of the NBDSOSiPР is a significant step towards modernizing Kazakhstan’s environmental management system and promoting sustainable development. It is anticipated that the system will contribute to the improvement of the country’s environmental performance, the protection of its natural resources, and the well-being of its people.

  • Kazakhstan’s Nuclear Energy Future: Insights from Expert Panel Discussion

    Kazakhstan’s Nuclear Energy Future: Insights from Expert Panel Discussion

    Kazakhstan, known for its abundant uranium reserves, stands at a pivotal moment as it considers expanding its role in the global nuclear energy sector beyond mere resource supply.  In a significant move that could reshape Central Asia’s energy landscape, Kazakhstan is advancing plans to develop nuclear power capabilities, with potential implications for both domestic energy security and global nuclear fuel markets. A recent British-Kazakh Society webinar brought together international experts to examine the opportunities and challenges ahead.

    The webinar featured a panel of distinguished experts, moderated by Nicholas Pomeroy, General Director of AngloKazakh. The panel included Ben Godwin, Managing Partner at PRISM Strategic Intelligence; Aldiyar Toktarov, Chairman of the Atomic Industry Development Association; Mehmet Ogutcu, Chairman of the London Energy Club and Biplab Rakshi, Managing Director of Atomic Acquisitions.

    Nuclear Power in Kazakhstan: Ambitious Plans Meet Complex Realities

    In a significant move that could reshape Central Asia’s energy landscape, Kazakhstan is advancing plans to develop nuclear power capabilities, with potential implications for both domestic energy security and global nuclear fuel markets.  The country faces an existing electricity deficit and increasingly relies on electricity imports. With about 70% of current electricity generation coming from coal, Kazakhstan must balance its ambitious 2060 net-zero target against growing energy demands. The government’s plan to decommission all coal power plants by 2050 adds urgency to developing alternative baseload power sources.

    Following a national referendum that approved nuclear power development, Kazakhstan has announced plans for not just one, but potentially three nuclear power plants: one in the initial phase, with additional facilities proposed for West Kazakhstan (Aktau) and East Kazakhstan. This ambitious scope has raised both excitement and concerns among industry observers.

    The Consortium Question

    A key focus of Kazakhstan’s nuclear strategy is the formation of an international consortium to construct and operate the plants. While the exact composition remains unannounced, President Tokayev has pointed to Turkey’s Akkuyu nuclear project as a potential model. However, experts at the webinar highlighted both opportunities and risks in this approach.

    The Turkish model, which relies heavily on Russian state nuclear corporation Rosatom for financing and technology, has faced challenges including sanctions-related complications affecting international equipment supplies. This has led to cost overruns and delays, prompting suggestions that Kazakhstan might benefit from a more diversified partnership approach.

    Sanctions and International Partners

    The role of Russian participation emerges as a particularly complex issue. While Rosatom itself isn’t under direct sanctions, experts noted that 70 of its subsidiaries and key personnel are designated under various international sanctions regimes. This creates potential complications for international financing and technology transfer.

    Ben Godwin, partner at PRISM Strategic Intelligence, emphasised that while Russian involvement might seem inevitable given regional ties, Kazakhstan will need to carefully structure any such participation to avoid compromising other international partnerships and financing options.

    Local Content and Industrial Development

    A recurring theme in the discussion was Kazakhstan’s opportunity to develop domestic nuclear industry capabilities. Aldiyar Toktarov, chairman of the Atomic Industry Development Association, highlighted how multiple nuclear projects could create economies of scale that justify investments in local supply chains and workforce development.

    Kazakhstan’s position as the world’s largest uranium producer provides unique leverage. Experts suggested the country could use this advantage to negotiate better terms with technology vendors and potentially develop higher-value nuclear fuel cycle capabilities domestically.

    Regulatory and Financial Challenges

    The development of an appropriate regulatory framework emerges as a critical near-term priority. Currently, Kazakhstan lacks an independent nuclear regulator, though experts noted this could be developed following IAEA guidelines. The financial aspects also present challenges, with nuclear projects notorious for cost overruns. Recent examples cited include the UK’s Hinkley Point C project, whose budget has escalated from £16 billion to potentially £40-50 billion.

    Kazakhstan’s current fiscal situation adds another layer of complexity. With the country already dedicating over 20% of its budget to debt service, financing multiple large infrastructure projects simultaneously will require careful planning and potentially innovative funding approaches.

    Looking Ahead

    The path forward for Kazakhstan’s nuclear ambitions will require balancing multiple priorities. These include:

    – Developing clear criteria for consortium partners that address both technical and geopolitical considerations
    – Building robust regulatory frameworks aligned with international standards
    – Creating sustainable financing structures that don’t overburden state resources
    – Maximising local content and industrial development opportunities
    – Ensuring environmental and safety standards meet international best practices

    While the timeline for announcing the initial consortium structure appears to be measured in months rather than years, experts emphasized the importance of “hurrying slowly” to ensure proper foundation-laying for what will be a multi-decade program.

    The success of Kazakhstan’s nuclear power program could have implications beyond its borders, potentially offering a model for other developing nations seeking to balance energy security, economic development, and climate goals. However, the complexity of the challenges ahead suggests that careful planning and international cooperation will be essential for turning these ambitious plans into reality.

    The British-Kazakh Society plans to host further webinars to delve deeper into these critical areas, ensuring continued dialogue and progress. For more information on upcoming events, visit the BKS website.

  • Kazakhstan’s Extractive Industry in 2024: Results and Challenges

    Kazakhstan’s Extractive Industry in 2024: Results and Challenges

    The extractive sector in Kazakhstan faced numerous hurdles in 2024, with a mix of progress and setbacks across various industries. While many companies are expected to release full production reports in spring 2025, preliminary data offers insight into the performance and challenges encountered by the nation’s resource sectors.

    Mining and Metallurgy

    According to Kazakhstan’s National Statistics Bureau (Qazstat), the industrial production index for the extractive industry stood at 99.8% in 2024 compared to the previous year. The decline was mainly attributed to a drop in coal production, despite positive trends in other areas.

    Coal Mining

    The coal industry in Kazakhstan experienced a decline in production, with a 3.9% decrease in total output, which amounted to 108.46 million tonnes. This was due to reduced extraction of both hard and brown coal. However, despite the drop in volume, the total value of the coal sector increased by 2.9%, reaching 537.79 billion tenge.

    The coal industry continues to face challenges such as logistical issues, with disruptions in transportation to Russia and Europe. These challenges are compounded by the growing global shift toward greener energy solutions, putting further pressure on traditional coal industries. In response, the government is focusing on the development of “clean coal” technologies and strengthening cooperation with international partners.

    Mining of Non-Ferrous Metals

    In terms of non-ferrous metals, Kazakhstan witnessed positive developments, with production of copper and zinc ores growing by 7.4% and 15.9%, respectively. The production of refined copper rose by 11.6%, while zinc output also saw a slight increase. Meanwhile, silver production continued to decline, which is expected to continue due to the diminishing quality of ore.

    The mining of iron ore experienced growth, with a 20.2% increase, bringing the total output to 57.21 million tonnes. Notably, production of iron ore pellets also showed positive trends.

    Precious Metals

    Kazakhstan’s precious metal mining sector remained relatively stable, with gold production seeing a small increase of 0.09% compared to 2023. The country produced 132.32 tonnes of raw and semi-processed gold. Gold extraction is expected to grow in the coming years, with new mining projects in development, including those at Bakhtai, Sarymbet, and Novoleninogorsk.

    Despite this, silver mining saw a sharp decline, falling by 18.5% as companies reported decreasing yields. The primary reasons for this downturn are lower ore content and reduced demand for silver.

    Challenges for the Extractive Sector

    Kazakhstan’s extractive sector faced several key challenges in 2024, many of which stemmed from global trends and domestic issues. While some sectors, such as copper and gold, showed positive growth, others, like coal and silver, faced significant obstacles.

    One of the primary concerns for the coal sector was logistical issues caused by trade disruptions with Russia, as well as fluctuating global prices. Additionally, the push for greener energy alternatives has placed pressure on traditional coal industries, creating an uncertain future.

    Despite these challenges, the extractive industry remains a vital part of Kazakhstan’s economy, accounting for a significant portion of national revenue. Moving into 2025, the sector is expected to focus on innovation and international collaboration to overcome these obstacles and drive growth across the country’s resource industries.

  • Kazakhstan Set to Join Nuclear Club: Nation Builds First Power Plant

    Kazakhstan Set to Join Nuclear Club: Nation Builds First Power Plant

    Kazakhstan, a key ally of Russia and responsible for 43% of global uranium production in 2022, is embarking on a significant step towards nuclear power generation. Possessing 12% of the world’s uranium resources and previously operating a now-decommissioned Russian-built reactor, the nation is now actively pursuing its first nuclear power plant (NPP). This development, as reported by the World Nuclear Association, signals a potential shift in the global nuclear landscape.

    Currently, Kazakhstan focuses on producing nuclear fuel pellets, adding value to its uranium output. A new fuel fabrication plant, with 49% Chinese investment, is also under construction. In 2023, uranium production reached 21,112 tonnes, with projections of 21,000-22,500 tonnes for 2024. Kazatomprom, the national atomic company, manages 13 uranium mining projects, some in joint ventures with foreign entities.

    President Kassym-Jumart Tokayev recently emphasised the urgent need for the NPP, citing growing energy shortages and the country’s development goals. He instructed the government to create long-term plans for the nuclear industry and identify suitable locations for future plants, prioritising modern, safe technologies. The Almaty region is likely to host the first NPP, according to Kazakh news outlet Vlast.kz, quoting Prime Minister Olzhas Bektenov. President Tokayev reiterated the commitment to carbon neutrality, but with a more “rational” approach.

    The government aims for complete energy self-sufficiency and reserves of 15-20%, targeting an additional three gigawatts of energy capacity within two years. Strengthening the Western Zone’s electrical networks by 2027 is also planned.

    While Kazakhstan has considered nuclear power for decades, the legacy of Chernobyl and the Semipalatinsk nuclear test site has bred public scepticism. Concerns about nuclear safety, corruption, and dependence on foreign infrastructure remain. A recent referendum, however, reportedly saw 70% of voters support the construction of NPPs.

    Choosing a reactor vendor presents a geopolitical challenge. Russia, France, China, and South Korea are all potential suppliers, and balancing technical and commercial factors with international relations will be complex. Financing and localising the projects are also critical. Some fear Russian influence via Rosatom, but Kazakhstan’s growing capabilities, including fuel assembly production with French technology and Chinese investment, offer more options. Carnegie Politika suggests that Kazakhstan’s sovereign wealth fund and increasing availability of foreign loans can address financial needs.

    This move could mark the beginning of Kazakhstan’s nuclear era. While nuclear energy for civilian use is accepted in theory, its potential for dual use raises concerns. Kazakhstan’s development will make it the first Central Asian nation with a nuclear power programme, impacting the entire region. With both China and Russia having vested interests in Central Asia, particularly Kazakhstan, it is vital that this resource-rich region, seen as a bridge between East and West, does not become a stage for superpower rivalry.

    Prof. KN Pandita (Padma Shri) is the former director of the Center of Central Asian Studies at Kashmir University. This article reflects the author’s personal views and not necessarily those of EurAsian Times. He can be contacted at knp627 (at) gmail.com.

  • East Star Resources Discovers Potential Copper and Gold Reserves in Kazakhstan

    East Star Resources Discovers Potential Copper and Gold Reserves in Kazakhstan

    British company East Star Resources Plc has reported the discovery of additional potential copper and gold reserves at the Verkh-Uba, Snezhnoye, and Talovskoye exploration sites in Kazakhstan, with Verkh-Uba identified as the most promising deposit.

    “Recent exploration work has yielded encouraging results across both of our current operational areas. The findings at Verkh-Uba demonstrate that we are advancing this already significant copper asset while refining other targets, including Talovskoye, for near-term drilling. Additionally, the discovery of a large epithermal gold deposit at Snezhnoye, constrained by old artisanal gold workings, is undoubtedly exciting,” said East Star CEO Alex Walker.

    East Star, which has been operating in Kazakhstan for over three years, expressed optimism that 2025 would mark significant progress in all three exploration projects.

    As of February 4, the company completed drilling three boreholes at Verkh-Uba, each confirming copper deposits beyond previously explored areas. All 238 core samples have been sent to ALS in Karaganda for analysis, with results expected by the end of February. Furthermore, satellite data revealed a substantial gold-in-soil anomaly measuring four by one kilometer at the Snezhnoye site.

    Drilling at Verkh-Uba commenced on November 12, 2024, and paused for the winter break on December 19, 2024. Based on analysis results, the company will determine whether to proceed with additional drilling in 2025 and assess the potential for substantial reserves. If viable, East Star may initiate open-pit mining operations.

    Verkh-Uba remains the company’s most promising project, with a preliminary JORC-compliant resource estimate of 20.3 million tonnes containing 1.16% copper, 1.54% zinc, and 0.27% lead. East Star Resources is listed on the London Stock Exchange under the ticker EST.

  • Kazakhstan Rejects C29 Metals’ Initial Bid for Ulytau Uranium Project

    Kazakhstan Rejects C29 Metals’ Initial Bid for Ulytau Uranium Project

    Australian mining company C29 Metals received notification from Kazakhstan’s Ministry of Industry on November 28, 2024, that its initial application to transfer ownership rights of Ulytau Resources Limited, holder of the Ulytau geological project, had been rejected at the first stage. This was revealed in the company’s quarterly activity report, published in late January, as reported by inbusiness.kz.

    According to the ministry’s statement, the request was denied under Subparagraph 1, Paragraph 10, Article 45 of Kazakhstan’s Subsoil and Subsoil Use Code. This clause allows refusal if the transfer of subsoil use rights or related assets threatens national security, including through the concentration of such rights.

    Following the rejection, C29 Metals requested a trading halt on the Australian Stock Exchange on November 29, with a suspension of quotations on December 3, later voluntarily extended on December 17. When trading resumed on December 23, the company’s stock price fell sharply.

    C29 Metals had signed a binding share purchase agreement in April 2024 to acquire 100% ownership of the Ulytau uranium project in the Moiynkum district of Zhambyl region. The license area was estimated to contain around 10 million pounds (3,800 tonnes) of uranium oxide. The project’s previous owners included several Kazakh investors.

    The company had been expanding its operations, obtaining two additional exploration licenses and receiving approvals for geophysical surveys, soil sampling, and drilling by late 2024. It had also signed a memorandum of understanding with Kazatomprom’s geological subsidiary, Volkovgeology, in anticipation of a commercial agreement.

    Upon receiving the rejection notice, C29’s Managing Director Shannon Green immediately traveled to Almaty to work with consultants and engage with Kazakh government authorities to address concerns. The company has been encouraged to reapply and is preparing a revised submission. Despite suspending exploration activities, C29 Metals remains financially stable and ready to resume operations once regulatory approval is granted.

    Kazakhstan’s uranium sector has been under increased scrutiny. In January, inbusiness.kz reported a legal precedent involving the revocation of a uranium exploration license from Nur Dala, which had Chinese investment. Additionally, Canadian firm Laramide Resources has been planning uranium exploration in the Chu-Sarysu basin.

    Kazakh law requires that uranium mining contracts be awarded only to companies where Kazatomprom holds at least a 51% stake, though exploration is not subject to the same restriction. Legislative amendments proposed in September 2024 may further reshape Kazakhstan’s uranium exploration and mining regulations.

  • Kazakhstan and Japan Expand Cooperation in Critical Minerals Sector

    Kazakhstan and Japan Expand Cooperation in Critical Minerals Sector

    Kazakhstan’s Minister of Industry and Construction, Kanat Sharlapayev, met with representatives from the Japan International Cooperation Agency (JICA) and the Japan Organization for Metals and Energy Security (JOGMEC) to discuss further collaboration in the critical minerals sector. The meeting, reported by El.kz with reference to the Ministry of Industry and Construction, focused on strengthening ties between the two countries in resource exploration and processing.

    JICA, a Japanese government agency specializing in technical assistance programs for developing nations, has been working with Kazakhstan since 2011. Through this partnership, Kazakhstan implemented the State Energy Register (SER), a key tool for monitoring and controlling energy consumption, based on Japanese expertise.

    JOGMEC, which integrates Japan’s former National Oil Corporation and Metal Mining Agency, has been actively involved in geological exploration and mineral extraction in Kazakhstan. In August 2024, the Ministry of Industry and Construction signed a Memorandum of Cooperation with JOGMEC, outlining joint efforts in mineral exploration, mining, and processing.

    During the meeting, both parties explored the possibility of launching new projects in the critical minerals sector, crucial for industrial production and the energy sector. Strengthening partnerships in rare earth metal extraction is expected to enhance Kazakhstan’s investment appeal and introduce advanced technologies in geological exploration.

  • Kazakhstan and Japan Strengthen Cooperation on Critical Minerals

    Kazakhstan and Japan Strengthen Cooperation on Critical Minerals

    Kazakhstan’s Minister of Industry and Construction, Kanat Sharlapaev, met with representatives of Japan’s International Cooperation Agency (JICA) and the Japan Organization for Metals and Energy Security (JOGMEC) to discuss future collaboration on critical minerals.

    JICA has supported Kazakhstan since 2011, helping establish the country’s State Energy Registry based on Japanese expertise. Meanwhile, JOGMEC signed a memorandum with Kazakhstan in August 2024 on geological exploration, mining, and mineral processing.

    The meeting focused on expanding joint projects related to critical minerals essential for industrial and energy sectors. Kazakhstan aims to strengthen international partnerships in rare earth metals to boost investment appeal and integrate advanced geological exploration technologies.

  • KAZ Minerals Bozshakol to Extract Over 6 Million Tons of Construction Materials by 2029

    KAZ Minerals Bozshakol to Extract Over 6 Million Tons of Construction Materials by 2029

    KAZ Minerals Bozshakol, controlled by Kazakh businessmen Vladimir Kim and Oleg Novachuk, plans to extract 6.076 million tons of crushed and gravelly soil, as well as gravelly sand, from the Northern deposit between 2025 and 2029. This volume represents the site’s entire balance reserves.

    The Northern deposit, located 60 km west of Ekibastuz in Pavlodar Region, covers 169.9 hectares. Excavation will be carried out using heavy machinery, with materials transported for constructing embankment dams at the Bozshakol copper mine. Workers will reside in a shift camp, and operations will require 2,280 cubic meters of diesel fuel.

    Bozshakol is one of KAZ Minerals’ key sites, producing 79,200 tons of copper in January–September 2024. In comparison, Aktogay contributed 172,200 tons, while operations in East Kazakhstan and Kyrgyzstan produced 35,600 tons.

    Vladimir Kim, who owns 63.5% of KAZ Minerals, ranks fourth among Kazakhstan’s richest individuals, with a net worth of $3.6 billion (Forbes) or $7.23 billion (Bloomberg). Oleg Novachuk, with a 36.5% stake, has an estimated wealth of $265 million.